Online brokerage services have existed for over 20 years. Trading investments today has never been cheaper. So while the race towards cheap trades (in some cases free) is happening, other functionality is becoming more important when selecting a stock broker.
For this review, I compare TD Ameritrade and Vanguard. Which one is better depends on your needs? So let's examine the major features first.
We've determined with online brokerages the most critical feature customers care about is the
cost per trade. The second most important feature is the minimum deposit, and the last is if the broker
offers mutual funds. Let's look at how TD Ameritrade and Vanguard
stack up against each other on these points.
To start, we will consider the minimum investment required for both applications. In other words, how much does one need to invest to use the service? Out of the two, TD Ameritrade minimum investment of $0 is smaller than the deposit of required by Vanguard.
Next I'll consider cost per trade for both brokers.
Out of the two, TD Ameritrade is cheaper per trade at $6.95 than Vanguard at $7.00/trade.
Both TD Ameritrade and Vanguard offer mutual funds. So this feature isn't a clear difference between the stock brokers.
Overall, TD Ameritrade rates 9 out of 10, while Vanguard ranks 9 out of 10. For more information on either, you can read our full reviews on TD Ameritrade and Vanguard.
Stock Brokers | Recommended | Recommended |
|---|---|---|
| Review | TD Ameritrade Review | Vanguard Review |
| Overall rating as by Investor Junkie. Rating | 9/10 | 9/10 |
| Commissions & Fees | 8.5/10 | 8/10 |
| Customer Service | 9/10 | 7.5/10 |
| Ease of Use | 9/10 | 8/10 |
| Tools & Resources | 9/10 | 6/10 |
| Amount of Deals | 10/10 | 9/10 |
| Account Options | 8/10 | 8/10 |
| Promotions | Trade Free for 60 Days + Get Up to $600 Cash | None |
| Minimum Investment | $0 | $3,000 |
| Stock Trades | $6.95/trade | $7/trade for first 25 trades; additional trades: $20/trade |
| Options Trades | $6.95/trade + $0.75/contract | $7/trade + $1/ contract |
| Mutual Funds |  | |
| Investment Types | Stocks, Penny Stocks, ETFs, Mutual Funds, Bonds, FOREX, Futures | Stocks, Penny Stocks, ETFs, Mutual Funds, Bonds, FOREX |
| Accounts |
|
|
| Access | Website, iOS App, Apple Watch, Android App | Website, iOS App, Android App |
| Broker Assisted Trade | | |
| Virtual Trades | | |
| No Fee ETFs | | |
| Customer Service | | |
| Autotrading |  | |
Sign Up | Sign Up | Sign Up |
About TD Ameritrade
Get complete access to all kinds of investment options with relatively low pricing from TD Ameritrade. One of its biggest advantages is it requires no minimum deposit to open an account. This is the closest we can find to a perfect online broker.
About Vanguard
Use Vanguard to get a wide selection of low-cost, no-load mutual funds, ETFs, stock broker services, and financial planning. For investors wanting a one-stop shop for all their banking and financial needs, you'll have to look elsewhere.
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